TomTom 2008 Annual Report Download - page 19
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Marketing expenses
Marketing expenses include advertising expenses
and any expenses directly attributable to our
marketing teams, including personnel expenses,
worldwide. Total marketing expenses decreased 5%
to €130.6 million in 2008, down from €137.3 million
in 2007.
SG&A expenses
SG&A expenses include the costs of personnel
engaged in sales activities, customer support, IT,
legal, office and other general expenses. SG&A
expenses increased by 35% to €144.9 million in 2008,
up from €107.6 million in 2007, mainly as a result
of the increase in staff and professional services.
TELE ATLAS BUSINESS REVIEW
Tele Atlas revenue
In 2008, we achieved a revenue of €289 million,
down 6% on 2007. The main driver behind this
revenue decrease was decreasing revenue from
PNDs and automotive & data, partly offset by
increasing other revenues, which include mobile,
internet and enterprise and governmental services.
(in € millions) 2008 2007 Change
Revenue Tele Atlas
PNDs 151 170 -11%
Automotive & data 55 66 -17%
Other 84 72 17%
Total 289 308 -6%
Tele Atlas geography
In 2008, Tele Atlas generated revenue in EMEA,
North America and Asia Pacific. EMEA sales were
down year-on-year however this was partly
compensated by increased sales in North America
and the rest of world. The proportion of sales outside
EMEA rose to 34% in 2008, up from 30% in 2007.
North American revenue increased to €81 million in
2008 up from €79 million in 2007. Revenue in North
America represented 28% of Tele Atlas revenue, up
from 26% in the previous year. In EMEA, revenue
decreased by 11% to €192 million, down from
€217 million.
(in € millions) 2008 2007 Change
Tele Atlas revenues
per region
Europe 192 217 -11%
North America 81 79 3%
Rest of world 16 12 30%
Total 289 308 -6%
Tele Atlas gross result
The gross margin for Tele Atlas remained fairly
stable at 87% (2007: 90%).
Tele Atlas operating expenses
Operating expenses, excluding employee stock
compensation charges, in 2008 decreased to
€251 million, down from €261 million in 2007. As a
percentage of sales, operating expenses (excluding
SOC) increased by 2.0 percentage points to 86.9%
in 2008 from 84.9% in 2007.
The €10 million decrease in total operating
expenses is explained by a decrease of €7 million
in SG&A and a decrease of €5 million in marketing
spend. As a percentage of revenue, R&D expenses
increased by 2.5 percentage points to 34.7% of
revenue, SG&A decreased by 0.7 percentage points
to 27.7% and marketing expenses decreased by 1.2
percentage points to 8.4%.
Percentage Percentage
(in € millions) 2008 of revenue 2007 of revenue
Tele Atlas OPEX
R&D 100 35% 99 32%
Amort. of T&D146 16% 45 15%
Marketing 24 8% 30 10%
SGA 80 28% 88 28%
Total OPEX2251 87% 261 85%
1 Amortisation of technology & database
2 Excluding stock compensation charges (SOC)
R&D expenses
R&D expenses include R&D personnel costs, third
party software and manufacturing design costs,
patent creation and maintenance costs. Total R&D
expenses increased slightly to €100 million
compared to €99 million in 2007.
Marketing expenses
Marketing expenses include advertising expenses
and any expenses directly attributable to our
marketing teams, including personnel expenses,
worldwide. Total marketing expenses decreased
18% to €24 million in 2008, down from €30 million
in 2007.
SG&A expenses
SG&A expenses include the costs of employees
engaged in sales activities, customer support, back
office and internal supporting activities, IT, legal,
office and other general expenses. SG&A expenses
declined strongly to €80 million in 2008 compared
to €88 million in 2007.